Costco Automobile Insurance coverage Overview 2024: Professionals, Cons, and Options

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You might know Costco for its wholesale costs and worth of its meals court docket meals, however do you know that it presents a number of different companies to members, together with auto insurance coverage? Costco auto insurance coverage is obtainable via Join, an American Household Insurance coverage firm. 

Enterprise Insider’s private finance group in contrast Costco Auto Insurance to the best car insurance companies. We discovered that it might be a very good choice for Costco members. It has excessive buyer satisfaction scores in some areas and usually inexpensive costs. It additionally contains complimentary advantages that opponents often supply at a further worth. 

Costco Auto Insurance coverage Overview

These with Costco memberships rave about its wholesale costs and the worth of meals court docket meals, however it additionally presents a number of different companies to members, together with auto insurance coverage. Costco Auto Insurance is obtainable via Join, which is powered by American Household Insurance coverage. You may want a Costco membership to get insured, however the upside is a wide range of reductions and usually inexpensive charges.

That mentioned, Join has many damaging buyer critiques, particularly for its claims dealing with and customer support. Additionally, Costco Insurance coverage Company is not out there in all areas. Presently, it would not supply new auto or residence insurance coverage insurance policies to residents of California and Florida. It additionally is not out there in Alaska, Louisiana, Maine, North Dakota, or Wyoming.

Costco Auto Insurance coverage Professionals and Cons

Costco Auto Insurance coverage Professionals

• Decrease-than-average premiums 
• Complimentary advantages and distinctive perks
• Affords hole insurance coverage and accident forgiveness

Costco Auto Insurance coverage Cons

• Solely out there to Costco members
• Not out there in all states 
• Destructive buyer overview

Costco Auto Insurance coverage Plans Obtainable

Earlier than you think about the varied kinds of automobile insurance coverage provided by Costco, be sure you’re a member, so that you’re eligible to buy a coverage.

Join presents the next kinds of auto insurance coverage protection: 

• Comprehensive coverage: Covers “out of your management” occasions, equivalent to weather-related occasions, vandalism or theft, or hitting an animal. Complete insurance coverage contains stolen key protection, which includes changing the locks and waiving the deductible if it prices beneath $250. 
• Collision coverage: Covers collisions with one other car or object, equivalent to a light-weight pole or a pothole. 
• Rental automobile: Often known as rental reimbursement protection, it pays as much as a day by day quantity you choose in the direction of a rental car after a coated loss. 
• Bodily damage: When you injure somebody in an accident and are discovered at fault, this may also help cowl the price of a lawsuit, jury award, or settlement.
• Property injury: When you’re in an accident and trigger injury to a different’s property, equivalent to sliding on ice into your neighbor’s mailbox or hitting a parked car, this may also help pay for the injury. 
• Uninsured motorist: When you’re in an accident and the opposite driver is uninsured or underinsured, it will assist pay to your medical bills and broken car. 
• Medical expense: Covers medical-related bills after an accident, together with hospital stays, physician visits, and ambulance charges. 
• Personal injury protection: Private Damage Safety (PIP) is required in some states and may cowl medical bills, misplaced wages, misplaced companies (equivalent to childcare), and funeral bills.
• Glass Restore Deductible Waiver: Join clients get free windshield repairs, which waives their deductible if their windshield solely wants restore fairly than substitute. 
• Lifetime renewability: If one thing sudden occurs, much more than as soon as, you should still be capable to have your coverage renewed to your lifetime. 
• Stolen key substitute: If in case you have complete protection, Costco Join replaces your stolen key and lock at no extra price. If the substitute prices lower than $250, your deductible will likely be waived. 

Further Protection Choices provided by Costco Auto Insurance coverage (Riders)

Costco members can take pleasure in the next extra advantages: 

• Real-time roadside assistance: This covers the price of assist for a flat tire, lifeless battery, low gas, towing, and different roadside emergencies. 
• Accident journey expense protection: To make your life simpler while you’re on trip or touring and concerned in a automobile accident, Join will assist cowl lodging and journey bills if in an accident greater than 100 miles from residence disables your car.
• Assured auto safety: GAP insurance coverage covers the distinction between what your new automobile is value, or what you continue to owe, and what your insurance coverage coverage can pay out. 
• New automobile substitute: Join’s new automobile substitute protection means that you can substitute your car with the identical make and mannequin at as much as 110% of the producer’s recommended retail worth if it is inside the first 12 months of possession or 15,000 miles.
• Accident forgiveness: This protection overlooks a primary at-fault accident, stopping your premiums from growing. You will need to have maintained a clear driving file for a sure period of time earlier than qualifying for this protection.

Costco Government members get extra perks, together with free roadside help and lifelong renewability. 

How A lot Does Costco Auto Insurance coverage Value?

The price of Costco Join insurance coverage is $114 monthly or $1,368 per 12 months, cheaper than the nationwide common of $1,638, Policygenius stories. Costco additionally claims that members who switched to Join saved, on common, $595.86 of their first 12 months. 

Remember that the value of auto insurance coverage via Costco will rely on varied components, together with ZIP code, driving historical past, age, and kind of automobile. It would additionally rely on the reductions you are eligible for. 

Some reductions that Costco presents embrace the next: 

• Premier security low cost: Obtainable for these with out accidents, visitors violations, or claims inside the previous 4 years. 
• Defensive driver course low cost: Take a “refresher” course via your state’s DMV or different accredited group and obtain a reduction upon completion. 
• Reductions for car security options: Contains anti-lock brakes, airbags, automated seatbelts, and anti-theft gadgets. 
• Garaging low cost: For individuals who park in a storage in a single day. Solely out there in sure states. 
• Good scholar low cost: For full-time college students who meet sure {qualifications}. 
• Scholar away low cost: Obtainable for college kids over 100 miles from residence with out a automobile. Permits them to maintain protection for weekends and college breaks with out paying full worth. 
• Multi-car low cost: Multiple car insured qualifies for a reduction. 
• Multi-product low cost: Bundling auto with residence, auto with umbrella, or auto with residence and umbrella insurance coverage saves. 
• Tenure low cost: When clients attain sure time milestones, Join will reward them with a decrease premium than new clients might get. 

Remember that you will additionally want a Costco membership to buy Join. There are two kinds of Costco memberships: Gold Star, which permits members to buy in-store and on-line, and the Government, which offers all the identical advantages because the Gold Star plus 2% money again. The Gold Star membership prices $65 per 12 months, whereas the Government prices $130 per 12 months. 

How you can Buy and Handle a Costco Auto Insurance coverage Coverage

To acquire a quote, members can choose their membership sort from Costco’s Auto & House Insurance coverage web site. Preserve the next data for you and some other drivers close by when buying a coverage: 

Private data: 

• Date of start
• Title
• Tackle
• Gender
• Marital standing 
• Contact data
• Cost data

Car data: 

• Make, mannequin, 12 months
• Possession (Lease, Finance, or Personal)
• Major use (Pleasure, Work/Faculty, Private)
• Annual mileage

Driving historical past: 

• Age you had been first licensed
• Previous Incidents (transferring violations, legal file, suspensions, and so on.)

Coverage data

• Present insurance coverage firm and limits
• Desired begin date

How you can File a Declare with Costco Auto Insurance coverage

Costco Auto Insurance clients can file claims 24/7 on-line or with over-the-phone reporting at 1-800-872-5246. Those that report losses over the cellphone (and with some on-line claims) will likely be contacted inside the subsequent enterprise day. Members can choose their favourite restore facility, or Join can advocate one close by. It additionally has most well-liked automobile rental services. 

The corporate recommends making ready the next data earlier than reporting a declare:

• Your coverage quantity
• Car data
• Auto accident particulars
• Police report (if relevant)
• The identify/insurance coverage data for the opposite social gathering concerned within the accident (if relevant)

What if Costco Auto Insurance coverage Denies My Declare?

If Costco Join denies your declare or pays a low settlement, you’ll be able to request an attraction. You may test your insurance coverage coverage for directions or ask your native insurance coverage agent for assist. Remember that Join might request extra proof or conduct one other inspection. 

When you’re nonetheless sad with the attraction outcomes, you’ll be able to file a criticism along with your state’s insurance coverage commissioner or rent an skilled automobile accident legal professional for additional investigation. 

Costco Auto Insurance coverage Buyer Critiques and Rankings

Costco Join acquired a lot of damaging buyer critiques. Policyholders expressed dissatisfaction with its poor customer support, sluggish claims dealing with, and premium will increase. 

 Check out its scores from varied websites.

• Higher Enterprise Bureau: 1.24 out of 5 stars
• Wallethub: 1.4 out of 5 stars

For buyer scores, Costco Join stands out for having a low criticism index ratio and robust monetary scores. Join by American Household ranks 2nd in California primarily based on JD Energy’s Buyer Satisfaction Survey. In the meantime, American Household Insurance coverage, its dad or mum firm, ranks extremely for buyer satisfaction throughout different areas.

Costco Auto Insurance coverage vs. Its Opponents

Costco Auto Insurance coverage vs. AAA Auto Insurance coverage 

Each Costco and AAA Auto Insurance require membership for auto insurance coverage. Costco’s auto insurance coverage is provided via Join, powered by American Household. AAA, identified for its roadside safety, works with a number of insurance coverage suppliers, together with The Hartford, Progressive, Vacationers, and MetLife. 

Whereas each corporations supply a number of reductions, AAA additionally presents a hybrid/different gas low cost. For individuals who drive a hybrid car or wish to evaluate a number of totally different suppliers concurrently, it might be value checking into AAA and evaluating costs with Costco’s auto insurance coverage. 

Costco Auto Insurance coverage vs. AARP Auto Insurance coverage

AARP automobile insurance coverage is one other membership-driven alternative, and members must be 50 or older. Whereas Costco’s insurance coverage is obtainable via American Household, AARP’s is obtainable via The Hartford Auto Insurance. AARP additionally presents RecoverCare, a singular program that helps care to your residence and animals whereas they’re recovering from an accident. 

Each corporations are ranked on J.D. Energy’s Auto Claims Total Buyer Satisfaction listing. The Hartford ranked above the {industry} common whereas American Household ranked beneath. If you’re each a Costco and AARP member or contemplating changing into one, you might wish to evaluate each corporations for worth and availability to see which makes essentially the most sense. 

Learn our AARP car insurance review. 

Costco Auto Insurance coverage FAQ

Why You Ought to Belief Us: What Went into Our Costco Auto Insurance coverage Overview

Our insurance coverage overview methodology consists of gathering and analyzing information from industry-trusted sources. We use this data to guage and evaluate auto insurance coverage corporations primarily based on the next components: 

• Prolong of protection: Most drivers will want normal coverages like complete, collision, and legal responsibility protection. Nonetheless, you might require totally different specialised coverages, equivalent to in case you’re a high-risk driver or drive a luxurious automobile. Insurance coverage corporations carry totally different coverage choices for various wants. We look at what carriers supply exterior the usual choices (riders) and who it might be finest for. 
• Common price: An “inexpensive” insurance coverage coverage is usually one that’s decrease than the price of a typical full protection coverage for an 18 to 70-year-old male or feminine policyholder. We additionally thought of whether or not an organization presents low charges for sure policyholder demographics (e.g., high-risk drivers) and offers extra advantages that enhance its worth. 
• Customer support:  An organization’s high quality of customer support is set by the helpfulness and professionalism of its Insurance coverage brokers. To know a supplier’s high quality of customer support, we have a look at its JD Energy Auto Insurance coverage Claims Satisfaction Examine rating and the NAIC criticism index ratio to see how every supplier stacks up amongst its opponents. We additionally overview buyer critiques to see what policyholders say concerning the firm. 
• Monetary stability: An insurance coverage firm’s monetary well being signifies an insurer’s longevity and skill to satisfy monetary obligations, like paying claims. We use AM Greatest to find out if an organization can face up to market volatility and reliably pay claims. A++ is the best score an organization can obtain, indicating superior monetary energy.

Be taught extra about how Business Insider reviews auto insurance.